Consider the following data on two government bonds that pay interest semi-annually on $100 face value. Bond A Bond B Coupon 8% 9% Yield to maturity 8% 8% Maturity (years) 2 5 a. Calculate the price for each bond. b. Compute the Macaulay durations for the two bonds. c. Compute the modified duration for the two bonds. Suppose that the yields increased by 20 basis points, compute the approximate price for bonds A and B. Recalculate the bond's new price based on 8.2% per annum yield to maturity. d. Due to financial distress, the bonds of A and B have been downgraded by Fitch from A- to BBB+. What is the predicted effect on the on the bond's price? What is the predicted effect on the bonds' yield to maturity?